Guide to employing in Romania with an Employer of Record

Romania

Get Started

Capital City

Bucharest

Currency

Romanian Leu, RON

Population Size

19,100,000

Language Spoken

Romanian

Overview - EOR and Payroll in Romania

XPANDIUM is a reliable partner for companies seeking employer of record (EOR) and payroll services in Romania. At XPANDIUM, we specialise in assisting companies in hiring and managing employees compliantly while avoiding the complexities of Romanian employment regulations and establishing a legal entity in Romania.

‍

As your expert provider of Employer of Record and payroll services in Romania, XPANDIUM takes care of payroll management/administration, contractor services, compliant candidate onboarding, tax payment and benefits through our local EOR entity. Our in-depth knowledge of Romanian labour regulations offers a compliant approach to workforce management – leaving you to focus on the critical part - maximising your business’s full potential.

‍

EOR Service Fee

Hire Employees

Employer of Record in Romania

€350

per employee, per month

plus salary and employer taxes

approx. $402 USD

Compliant Romanian employment contract

Payroll - salary, benefit and tax payments

Payroll support in Romanian and English

One monthly invoice, all costs shown upfront

Start Hiring in Romania

Xpandium - Hire your employees in Romania

Take the complexity out with Xpandium as your Employer of Record in Romania. Our local entity becomes the legal employer, and you keep full control of the day-to-day work.
‍

You

Manage the work

Choose who to hire and set the salary

Direct daily tasks, goals and working hours

Review performance and decide on raises

Pay one monthly invoice

Xpandium

Handles the employment

Romanian employment contract through our own local entity

Onboarding in 24 hours of signing

Registration with the Romanian authorities

Payroll - salary, benefits, tax payments and payslips

Employee taxes, contributions and filings

Human-led payroll support in Romanian and English

The Romanian labour market operates under the local labor code. This code regulates employer-employee relationships and sets the standards for fair and transparent workplace practices.

Companies are expected to comply with rules and procedures set out in the labor code about salary levels, hiring employees in Romania, hiring contractors in Romania, working hours, paid time off, different types of leave, termination of employee contracts and discrimination.

To hire employees in Romania, companies require an extensive understanding of the Romanian labor code, and non-compliance can be an expensive and time-consuming problem to solve.

Partnering with XPANDIUM can assist your company in avoiding these legal pitfalls and establishing and implementing the required procedures to ensure your workforce thrives.

Like other EU countries, Romania has different regulations for employing full-time and contracted or part-time employees. Misclassification of these employees may lead to non-compliance and result in costly fines and penalties.

XPANDIUM’s expertise in Romanian labour practices offers your business seamless guidance and support. We will ensure that your employees are correctly classified and that the proper labour practices are maintained.

XPANDIUM offers a comprehensive solution that simplifies compliance with Romanian labour codes and keeps companies updated on any new changes. With XPANDIUM, you can ensure that your business always operates within legal boundaries while avoiding hefty fines and penalties.

Employment Contract

Indefinite duration (open-ended) contracts are the general rule. Fixed term employment (temporary) is allowed only in cases set by law, for up to 36 months. The contract is concluded in writing, in Romanian, before the start date.

Probation period

Indefinite contracts: max 90 calendar days (120 for management roles). Fixed term: 5 working days (<3-mo term), 15 (3–6 mo), 30 (>6 mo), 45 for management roles (>6 mo)

Medical Examination

Required prior to hiring: an occupational medicine check-up confirming the employee is fit for the job.

Health and Safety Training

To be provided at hiring, before the employee starts work, and repeated periodically.

Working hours

8 hrs/day, 40 hours/week; weekly incl. OT ≤48 hrs on average

Minimum wage

RON 4,325 gross per month, effective July 1, 2026. Last updated: October 2026.

13th month salary

Not mandatory (private sector)

Benefit package

In Romania, there are no obligatory fringe-benefits that an Employer shall offer, however a custom voluntary plan may be set up, typically with private medical subscription (see more details at the Romanian Benefit section).

Payroll Cycle

Salaries are paid at least once a month, on the date set in the employment contract.

Health insurance in Romania

Employees are covered by the public health insurance system, funded by a 10% contribution withheld from the gross salary.

Employer taxes

2.25% work insurance contribution (CAM) on the gross salary.

Salary calculator

Employment cost

Employer of Record in Romania

Enter the gross salary per month

Type an amount or pick an example.

RON

RON8,180

total cost per employee, per month*

Net salaryapprox. 58.5% of grossRON 4,680

Work insurance contribution (CAM)2.25% of gross, paid by the employerRON 180

*Note: Net salary is an estimate before personal deductions. The EOR service fee (€350 per employee, per month) applies.

Request a Quote

Public Holidays

17 public holidays (2026)

Get Started

Popular benefits in Romania

Attracting top talent in the Romanian labour market will require companies to offer custom benefits as part of an attractive compensation package. As part of our payroll services in Romania, XPANDIUM can assist your business in designing and establishing customised plans to compensate employees beyond regular salaries. These voluntary, non-salary benefits may include:

Supplementary medical insurance (such as private health, dental and vision insurance)

Supplementary life insurance or other unique insurance plans

Additional paid time off

Flexible working schedules

Voluntary pension fund scheme

Benefit planning process includes

When your company hires employees in Romania, XPANDIUM can assist with planning and implementing benefits programs for individuals or groups of employees.

This process will include:

Helping you decide on the annual benefit amount to offer employees – this amount can be divided into 12 monthly payroll instalments.
Helping you determine which benefits will be best suited for your employees – this includes benefits such as medical insurance, additional paid time off and flexible work schedules.
Preparing and communicating internal policies outlining benefit plans and integrating these policies with payroll.
Ensuring employees have accurately completed benefit statements – specifying preferred benefits and respective amounts. These statements must be completed, signed and provided to the Romanian Employer of Record for processing.

Types of Leave in Romania

Annual (paid) leave

Statutory minimum 20 working days/yr (many employers offer more).

Public holidays

There are 17 public holidays in Romania.

Sick leave

Up to ~183 days/yr; tiered indemnity since Aug 2025: 55% (≤7 days), 65% (8–14), 75% (15+). Employer pays first 5 days.

Maternity leave

126 days (18 weeks) at 85%; min 42 days must be taken post-birth.

Paternity leave

10 working days, +5 extra if father completes an infant-care course.

Other / Child Adoption leave

Employees are entitled to a special leave if adopting a child under the age of 10.

Other / Child care leave

Any parent may take paid leaves for taking care of a child.

Leave varies based on the age of child:

3 days - up to 2 children under the age of 14
6 days - 3+ children under the age of 14

Payment for days taken is calculated based on the minimum wage.

Employment termination in Romania

Termination under probation period

Termination under probation period: either the employer or the employee may end the contract during or at the end of the probation period by written notification, with immediate effect. No notice period and no reason are required.

Resignation by Employee

Employees who resign give the notice set in their contract, up to 20 working days, or up to 45 for management roles.

Termination by Employer with notice

Employer (after probation): at least 20 working days’ notice; this minimum cannot be reduced. Resignation: the notice set in the employment contract, up to 20 working days for non-management roles and up to 45 working days for management roles

Termination of fixed term contract

If termination is due to Employer’s redundancy, the employee is entitled to the salary that they would have received from the date of termination to the expiry date of the contract.

Termination by mutual consent

The termination by mutual consent allows the Employer and Employee to agree freely in a written agreement with each other on the conditions of termination.

Expiry of employment contract

When the employment contract expires then such employment is automatically terminated.

Severance pay

Not required by law — only payable if provided in the contract or collective agreement

How EOR works in Romania

XPANDIUM simplifies hiring employees in Romania without establishing a legal entity. With our EOR services in Romania, we take on the burden of compliance by handling human resource administration, benefits, payroll and employee taxes for you.

By partnering with XPANDIUM as your EOR in Romania, we take on the employer's role on your behalf through our Romanian entity. We ensure your employee hiring, onboarding, and management will be done seamlessly and fully compliant with Romanian labour laws – enabling your employees to start working within days.

Take the complexity out of hiring employees in Romania, and contact XPANDIUM for a tailored solution.

Tell us the role

Share the role, start date and salary. We send you the full monthly cost before you make an offer.

Request a quote →

We employ them

We issue a compliant Romanian contract through our own local entity and register your new hire with the authorities.

You manage the work

Your employee works for you day to day. We run payroll, taxes and benefits, and send one monthly invoice.

Payroll in Romania

There are three common ways to run employee payroll in Romania:

In-house payroll – companies with their own Romanian entity can hire local HR and payroll staff. This gives full control, but it is costly and resource-intensive.
Remote payroll – a company can add its Romanian employees to its existing payroll system. Differences in employment law between countries make this difficult to get right.
External payroll provider – Outsourcing payroll services in Romania shifts the payroll administration to a third party, but your company stays responsible for any errors.

Efficient management and implementation of employee payroll in Romania will require your company to have processes and procedures to maintain timelines for employee/employer contributions, salary-related tax declarations and payroll payouts.

Successfully navigating these procedures requires understanding payroll intricacies specific to Romania. As your Employer of Record in Romania, XPANDIUM runs payroll for you in full compliance with all regulations, and allowing you to focus on growing your business.

Before payroll

Data collection and verification

We gather and verify each employee's data and set up the procedures for a correct pay run every month.

Payroll run

Salary calculation

Wages, taxes, deductions and applicable benefits are calculated under Romanian payroll rules.

After payroll

Payment and reporting (EOR)

We pay the salaries, provide payslips, handle payroll accounting and reporting, and keep everything in line with local regulations.

Payday: salaries are paid at least once a month, on the date set in the employment contract.

Employer of Record in Romania: FAQ

Answers to the questions companies ask us most before hiring in Romania.

How much does an Employer of Record cost in Romania?

Xpandium charges €350 per employee, per month as an Employer of Record in Romania. On top of that you pay the employee's gross salary and the employer's 2.25% work insurance contribution (CAM). The salary calculator on this page shows the total for any salary.

What is the difference between a payroll company and an EOR in Romania?

A payroll company calculates salaries and files taxes for a business that already has its own Romanian entity. An Employer of Record is the legal employer, so you need no entity in Romania. Xpandium's EOR service includes full payroll: salaries in RON, tax payments, contributions and payslips.

What are the employer taxes and payroll costs in Romania?

The employer pays a 2.25% work insurance contribution (CAM) on the gross salary. Most contributions are withheld from the employee's salary, so net pay is approximately 58.5% of gross before personal deductions. The minimum wage is RON 4,325 gross per month, effective July 1, 2026.

How quickly can we hire an employee in Romania?

Once the EOR service agreement and the employment contract are signed, we can onboard your employee within 24 hours. The contract must be signed in writing, in Romanian, before the start date. The employee also needs an occupational medical check-up before hiring, and health and safety training before starting work.

Is using an Employer of Record legal in Romania?

Yes. Xpandium employs your staff through its own Romanian entity, on contracts governed by the Romanian Labor Code, and registers each hire with the Romanian authorities.

Should we hire a contractor or an employee in Romania?

Contractors suit short, independent projects. If the person works set hours under your direction, like an employee, treating them as a contractor risks misclassification, with fines and penalties. Through an EOR, the person gets a compliant Romanian employment contract, and you still direct their work.

What notice period and severance pay apply in Romania?

After the probation period, the employer must give at least 20 working days' notice. Employees who resign give the notice set in their contract, up to 20 working days, or up to 45 for management roles. Severance pay is not required by law; it is payable only if the contract or a collective agreement provides for it.

How much paid leave do employees get in Romania?

At least 20 working days of paid annual leave per year, plus 17 public holidays (2026). Many employers offer more annual leave.

Can we start with an EOR and open our own Romanian company later?

Yes. Many companies use an Employer of Record to enter the market first. When you set up your own Romanian company (SRL), your employees can move to it, and we coordinate the timing with you and each employee.

What makes Xpandium different from other EOR providers in Romania?

Xpandium employs your team through our own Romanian entity, with no third party in between. You get human-led payroll support in Romanian and English, and one clear monthly price.

Ready to hire in Romania?

Tell us the role and salary, and our local team will send you the full monthly cost before you commit to anything.

No commitment · A real person, not a ticket system · Questions welcome